Why Digital Single Market...2016/06/06 · Digital Single Market 63% of EU entreprises provide mobile devices for business use 18% of total turnover of EU enterprises come from eCommerce

Digital Single Market

Why Digital Single Market ?

Zoran Stančič, Head of the European Commission Representation in Slovenia

Ljubljana, 6 June 2016


63% of EU entreprises provide mobile devices for business use

18% of total turnover of EU enterprises come from eCommerce (2015)

16% of EU SMEs sell online

39% of EU entreprises use Social Media

DIGITAL BUSINESSES

DIGITAL ECONOMY at the service of people

67% of EU citizens go online every day

160 million subscriptions on fixed Broadband

680 million mobile subscriptions


825 000 estimated demand/supply gap by 2020

ICT drives 1/3 EU GDP growth 2001-2011

2.8% of workforce

Over 1 million + 3%- 4% ICT jobs created in the last 3 years

ICT PROFESSIONALS

3 in 10 workers have low or no digital skills

7% of GDP size of Digital economy

6.7% of

Gov'tR&D = ICT

17% of business

R&D by ICT sector

ICT Sector

4%

ICT Other Sectors

17% EU patents in ICT

DIGITAL ECONOMY

43% EU risk capital in ICT companies


Political Guidelines of the

European Commission (2014-2019)

"I believe that we must make much better use of the great opportunities offered by digital technologies, which know no borders. To do so, we will need to have the courage to break down national silos in telecoms regulation, in copyright and data protection legislation, in the management of radio waves and in the application of competition law."

Jean-Claude Juncker, President of the European Commission, July 15th, 2014

https://ec.europa.eu/priorities/sites/beta-political/files/juncker-political-guidelines_en.pdf


May 6th, 2015: DSM Strategy

https://ec.europa.eu/priorities/digital-single-market_en


• End unjustified geo-blocking

• A more modern and European copyright framework

• Modernise eCommerce

• A more efficient and affordable parcel delivery

• Reduce VAT burden

Better

access for

consumers

and businesses

1. Helping to make the EU's digital world a seamless and level marketplace to buy and sell.


Innovative

services and

advanced

digital networks

• An ambitious overhaul of EU telecoms rules

• Review the audivisual media framework

• Online platforms

• Intermediaries

• Cooperative ("sharing") economy

• Reinforce trust and security in digital services

2. Designing rules which match the pace of technology & support infrastructure development.


Enhance the

Growth potential

of the digital

economy

• Data economy & cloud

• Inclusive digital economy and society

• Digital skills and e-government

• Standardisation & interoperability

3. Ensuring that Europe's economy, industry and employment take full advantage of what digitalisation offers.


2016 – 1st semester 2015

I

Copyright I Incl. Portability

e-Commerce package Incl. Geoblocking

Content package Incl. AVMSD, Platforms

DSM technologies & public services modernisation package (Industry, Cloud, eGov, Standards)

UHF/700Mhz

Copyright II Incl. SatCab

Cybersecurity PPP

Telecom review

e-Privacy

Free Flow Data

2016 – 2nd semester

II

3

1

2

DIGITAL SINGLE MARKET Timeline



I





UHF/700Mhz


Cybersecurity PPP

Telecom review

e-Privacy

Free Flow Data


II

3

1

2



December 9th, 2015

Digital Contract Rules Content Portability

Copyright Modernization Action Plan


Digital Contract Rules

Proposal for a DIRECTIVE on certain aspects concerning contracts for the supply of digital content

Proposal for a DIRECTIVE on certain aspects concerning contracts for the online and other distance sales of goods

http://ec.europa.eu/justice/newsroom/contract/news/151209_en.htm



• Digital content:

1. Supplier's liability for defects: If the digital content is defective, the consumer can ask for a remedy. There will be no time limit to the supplier's liability for such defects, because -unlike goods- digital content is not subject to wear and tear.

2. Reversal of burden of proof: If the digital content is defective, it will not be up to the consumer to prove that the defect existed at the time of supply, but rather for the supplier to prove that this is not the case. This is important considering the technical nature of digital content where it can be especially difficult for consumers to prove the cause of a problem.

3. Right to end a contract: Consumers will have the right to terminate long-term contracts, and contracts to which the supplier makes major changes.

4. Contract established in exchange for data: If the consumer has obtained a digital content or service, in exchange for personal data, the new rules clarify that the supplier should stop using them in case the contract is ended.




• Goods:

1. Reversal of the burden of proof for two years: In the EU, it is already the case that for a certain period of time a consumer asking for a remedy for a defective product does not have to prove that the defect existed at the time of delivery; it is up to the seller to prove the opposite. Currently, the time period during which the seller has this burden of proof varies by Member State; now it will be extended to two years throughout the EU.

2. No notification duty: Consumers will not lose their rights if they do not inform the seller of a defect within a certain period of time, as is currently the case in some Member States.

3. Minor defects: If the seller is unable or fails to repair or replace a defective product, consumers will have the right to terminate the contract and be reimbursed also in cases of minor defects.

4. Second-hand goods: For second-hand goods purchased online, consumers will now have the possibility to exercise their rights within a two-year period, as is the case with new goods, instead of the one-year period that currently applies in some Member States.

5.



Content Portability

Proposal for a REGULATION on ensuring the cross-border portability of online content services in the internal market

http://europa.eu/rapid/press-release_IP-15-6261_en.htm


Content Portability

Consumers who buy or subscribe to films, sports broadcasts, music, e-books and games at home must be able to access them when they are "temporarily present" in other EU countries. According to the proposed Regulation, "temporarily present" means present in a EU country other than the Member State of residence. This includes people who are staying temporarily in a different EU country for business trips or for holidays. Service providers should inform their subscribers of the exact conditions of their portability offers. In addition, right holders can require from service providers to implement effective means to authenticate the Member State of residence of subscribers in order to avoid abuses




http://europa.eu/rapid/attachment/IP-15-6261/en/Factsheet_2_COMMUNICATION_FINAL.pdf

1. Widening access to content across the EU

a) Cross-border content portability b) Cross-border distribution of TV and radio programmes in an online

environment c) Giving new life to works which are no longer commercialized d) Promote sub-titling and dubbing

1. Exceptions to © for an innovative and inclusive society

a) Make it easier for researchers to use text and data mining technologies b) Support educational institutions using online courses c) Support cultural institutions which hold European cultural heritage d) Help people with disabilities to access more works e) "Panorama" exception (currently optional for Member States)



http://europa.eu/rapid/attachment/IP-15-6261/en/Factsheet_2_COMMUNICATION_FINAL.pdf

3. Creating a fairer marketplace

a) Are authors and performers fairly remunerated? b) Is EU action on news aggregators needed? c) What is the role of online platforms? d) Are current rights clear enough and fit for the digital age (e.g.

"communication to the public")?

3. Fighting copyright infringement

a) Cut financial flows to massive infringers – "follow the money" approach b) Improve the legal framework for intellectual property rights

enforcement c) Make the removal of illegal content online more swift and efficient



I





UHF/700Mhz


Cybersecurity PPP

Telecom review

e-Privacy

Free Flow Data


II

3

1

2




I





UHF/700Mhz


Cybersecurity PPP

Telecom review

e-Privacy

Free Flow Data


II

3

1

2



February 2nd, 2016

Mobile Internet Services: Coordinate use of the 700 Mhz Band


700 Mhz Frequency Band


Proposal for a DECISION on the use of the 470-790 MHz frequency band in the Union 1. The Commission proposes that the 700 MHz band should be assigned to

wireless broadband by 30 June 2020 at the latest in all EU countries. 2. Currently, the ultra-high frequency (UHF) band (470-790 MHz) is mainly used for

TV broadcasting. 3. Member States will need to adopt and make public their national plans for

network coverage and for releasing this band by 30 June 2017. 4. They will need also to conclude cross-border coordination agreements by the

end of 2017. 5. Such plans will smooth the transition and ensure good network coverage that

will help to bridge the digital divide and create the necessary coverage conditions for connected vehicles or remote health care.

6. The next steps related to spectrum coordination are expected to be part of the review of EU telecoms rules, to be presented after the summer of 2016.


April 14th, 2016

Final Agreement on the General Data Protection Regulation


General Data Protection Regulation

http://europa.eu/rapid/press-release_STATEMENT-16-1403_en.htm

The Regulation updates and modernizes the principles enshrined in the 1995 Data Protection Directive to guarantee privacy rights.

Focus on:

reinforcing individuals' rights

strengthening the EU internal market

ensuring stronger enforcement of the rules

streamlining international transfers of personal data


General Data Protection Regulation

http://europa.eu/rapid/press-release_STATEMENT-16-1403_en.htm

Trust is a must • Easier access to one's data: Individuals will have more information on how their data is

processed and this information should be available in a clear and understandable way. A right to data portability will make it easier for individuals to transmit personal data between service providers.

• The right to know when one's data has been hacked: Companies and organizations must

notify the national supervisory authority of data breaches which put individuals at risk and communicate to the data subject all high risk breaches as soon as possible.

• Data protection by design and by default: Data protection safeguards must be built into

products and services from the earliest stage of development, and privacy-friendly default settings will be the norm.

• Stronger enforcement of the rules: data protection authorities will be able to fine

companies who do not comply with EU rules up to 4% of their global annual turnover. • Right to deletion: When an individual no longer wants her/his data to be processed, and

provided that there are no legitimate grounds for retaining it, the data will be deleted.



I





UHF/700Mhz


Cybersecurity PPP

Telecom review

e-Privacy

Free Flow Data


II

3

1

2




I





UHF/700Mhz


Cybersecurity PPP

Telecom review

e-Privacy

Free Flow Data


II

3

1

2



April 19th, 2016

Digitizing European Industry European Cloud Initiative


Digitizing European Industry


European industry across sectors and regardless of a company's size must fully use digital opportunities to be globally competitive. Traditional sectors (e.g. construction, agro-food, textiles) and SMEs are particularly lagging behind in their digital transformation. Recent studies estimate that digitization of products and services will add more than €110 billion of revenue for industry per year in Europe in the next five years.







• help coordinate national and regional initiatives on the digitalization of industry • focus investments in EU's public-private partnerships; encourage the use of e.g. EU

Investment Plan and European Structural and Investment Funds. • invest €500 million in a pan-EU network of digital innovation hubs (centres of excellence in

technology) where businesses can obtain advice and test digital innovations. • set up large-scale pilot projects to strengthen Internet of Things, advanced manufacturing

and technologies in smart cities and homes, connected cars or mobile health services. • adopt legislation that will support the free flow of data and clarify ownership of data

generated by sensors and smart devices. The Commission will also review rules on safety and liability of autonomous systems.

• present an EU skills agenda that will help give people the skills needed for jobs in the digital

age.




The Commission will:

ICT standardization priority plan • Focus on five priority areas: 5G, cloud computing, Internet of Things, data technologies and

cybersecurity • Co-finance the testing and experimentation of technologies to accelerate standards setting

including in relevant public-private partnerships.

Digital Public Services

• set up a digital single gateway enabling users to obtain all information, assistance and problem-solving services needed to operate efficiently across borders.

• interconnect all business registries and insolvency registers and connect them to the e-justice portal,.

• set up a pilot project with administrations that will apply the "once-only" principle for businesses across borders.

• help EU Member States develop cross-border e-health services such as e-prescriptions and patient summaries.

• accelerate the transition to e-procurement, e-signatures and implementation of the "once-only" principle in public procurement.


European Cloud Initiative


The European Cloud Initiative will make it easier for researchers and innovators to access and re-use data, and will reduce the cost of data storage and high-performance analysis. Making research data openly available will boost Europe's competitiveness by benefitting start-ups, SMEs and data-driven innovation. Overall, €2 billion in Horizon 2020 funding (over 5 years) will be allocated to the initiative.


European Cloud Initiative


2016: create a European Open Science Cloud for European researchers and their global scientific collaborators by integrating and consolidating e-infrastructure platforms, federating existing scientific clouds and research infrastructures, and supporting the development of cloud-based services. 2017: open up by default all scientific data produced by future projects under the €77 billion Horizon 2020 research and innovation programme. 2018: launch a flagship-type initiative to accelerate the nascent development of quantum technology, which is the basis for the next generation of supercomputers. By 2020: developing and deploying a large scale European high performance computing, data storage and network infrastructure, including by acquiring two prototype next-generation supercomputers of which one would rank among the top three in the world, establishing a European "Big Data Centre", and upgrading the backbone network for research and innovation (GEANT).



I





UHF/700Mhz


Cybersecurity PPP

Telecom review

e-Privacy

Free Flow Data


II

3

1

2




I





UHF/700Mhz


Cybersecurity PPP

Telecom review

e-Privacy

Free Flow Data


II

3

1

2



May 25th, 2016

Content / E-Commerce "Package"


Content / E-Commerce Package

http://europa.eu/rapid/press-release_IP-16-1887_en.htm http://europa.eu/rapid/press-release_IP-16-1873_en.htm

•Review of the Audiovisual Media Services Directive

•Policy on Online Platforms

•Legislative Proposal to address unjustified geo-blocking

•Legislative Proposal on cross-border parcel delivery

•Legislative Proposal to strengthen enforcement of

consumers' rights in the online environment









Audiovisual Rules


Review of the 2010 Audiovisual Media Services Directive: • Responsible video-sharing platforms: platforms which organize and tag a

large quantity of videos will have to protect minors from harmful content (such as pornography and violence) and protect all citizens from incitement to hatred, via e.g. tools for users to report and flag harmful content, age verification or parental control systems.

• Stronger role for audiovisual regulators: the Directive will now ensure

that regulatory authorities (European Regulators Group for Audiovisual Media Services or ERGA) are truly independent from governments and industry. ERGA will assess co-regulatory codes of conduct and advise the European Commission.


Audiovisual Rules


Review of the 2010 Audiovisual Media Services Directive: • More European creativity: currently, European TV broadcasters invest

around 20% of their revenues in original content and on-demand providers less than 1%. TV broadcasters must continue to dedicate at least 50% viewing time to European works; on-demand providers must ensure at least 20% share of European content in their catalogues. Member States are able to ask on-demand services available in their country to contribute financially to Europeans works.

• Advertising – more flexibility for TV broadcasters: the revised Directive

gives broadcasters more flexibility as to when ads can be shown. Broadcasters and on-demand providers will also have greater flexibility to use product placement and sponsorship, but in a transparent manner.


Online Platforms


Following a year-long assessment of online platforms

Targeted, principles-based approach

Industry and stakeholder to self- and co-regulate to ensure flexibility.


Online Platforms


Comparable rules for comparable digital services: comparable digital services should follow the same or similar rules and, where possible, the Commission should reduce the scope and extent of existing regulation. The Commission will apply these principles in ongoing reviews of EU telecoms legislation, and of the e-Privacy Directive. An obligation for online platforms to behave responsibly: The existing intermediary liability regime, set out in the e-Commerce Directive should be maintained. Specific problems will be addressed through targeted instruments, such as audiovisual or copyright rules (press release), or enhanced voluntary efforts by industry (e.g. code of conduct on countering hate speech online.)


Online Platforms


Trust is a must: cross-border enforcement cooperation will ensure that platforms fulfil their obligations regarding consumer rights, for example to clearly indicate sponsored search results. Industry must step-up voluntary efforts to tackle practices such as fake or misleading online reviews. The Commission will encourage online platforms to recognize different kinds of secure electronic identifications (eID) which offer the same reassurance as their own eID systems. Open markets for a data-driven economy: the free flow of data initiative scheduled for the end of 2016 will facilitate switching and portability of data among different online platforms and cloud computing services. A fair and innovation-friendly business environment: The Commission will carry out a fact-finding exercise into issues raised in the public consultation by businesses and suppliers who directly interact with platforms. These include, for example, concerns over unfair terms and conditions, in particular for access to important databases, market access and general lack of transparency. The Commission will determine, by spring 2017, whether additional EU action in this area is needed.


Geo-blocking

http://europa.eu/rapid/press-release_MEMO-16-1896_en.htm

Proposal for a REGULATION to address the problem of customers not being able to buy products and services from traders located in a different Member State, or being discriminated in accessing the best prices or sales conditions compared to nationals or residents. Basic principle of "non-discrimination" is already well enshrined in EU law – but legal certainty in the online environment is needed. No justified reason for geo-blocking or other forms of discrimination based on nationality, residence or location: • Sale of products without delivery (e.g. pick-up at store) • Sale of electronically supplied services (e.g. web hosting) • Sale of services provided in a specific physical location (e.g. car hire)


Geo-blocking


The proposal bans the blocking of access to websites and the use of automatic re-routing without the customer’s prior consent. Non-discrimination in payments via electronic transactions. The proposal excludes services already covered by sector-specific legislation or which are not easily traded across borders: - Transport services - Retail financial services - Audiovisual services


Cross-border Parcel Delivery


Proposal for a REGULATION to address very expensive (and opaque) market for cross-border parcel delivery, via: • Increased regulatory oversight of all parcel delivery service providers giving regulators legal

certainty of their role, enabling them to monitor the parcel market more effectively and so identify potential problems more easily.

• Parcel delivery providers that have 50 or more employees or are active in more than one EU country will be required to send national postal regulators basic information about their operations (e.g. name, address) and annual updates on volumes, turnover and the number of employees.

• Improved price transparency through the publication of domestic and cross-border prices for a set of basic services (such as sending a 2kg parcel to another country) offered by universal service providers.

• Requiring universal service providers to offer transparent and non-discriminatory third

party access to multilateral cross-border agreements, to encourage competition in cross-border parcel markets.


Consumer Protection


Proposal for a REGULATION to strengthen existing EU rules, via: • stronger coordinated mechanism to tackle practices which harm a large majority of EU

consumers (in 75% of Member States or more that are amounting to 75% of the EU population or more);

• consumer protection authorities will be able to order the shutdown of websites or social

media accounts that are clearly violating consumer protection rules; • consumer protection authorities will be able to request information from domain registrars,

internet service providers and banks to track financial flows and find out the identity of those behind bad practices

These measures are complemented by an update of the "guidance" on the Unfair Commercial Practices Directive (last updated in 2009): clarifies the application of EU rules to the latest online commercial practices, including for online platforms, travel and transport sector as well as the financial services sector.



I





UHF/700Mhz


Cybersecurity PPP

Telecom review

e-Privacy

Free Flow Data


II

3

1

2




I





UHF/700Mhz


Cybersecurity PPP

Telecom review

e-Privacy

Free Flow Data


II

3

1

2



2016 – 1st semester 2015 2016 – 2nd semester

DIGITAL SINGLE MARKET

What about Slovenia?


• The Digital Economy and Society Index

(DESI) measures progress of EU countries

towards a digital economy and society.

• It comprises 5 dimensions representing main

policy areas

1. Connectivity

2. Human Capital

3. Use of Internet

4. Integration of Digital Technology

5. Digital Public Services

• Relevant sub-dimensions under each

dimension, overall gathering 30 indicators

• The DESI has been calculated for 2014,

2015 and 2016

DIGITAL ECONOMY AND SOCIETY INDEX


DESI 2016 is based mostly on data from 2015

Country scores range between a minimum of 0 and a maximum of 1

DESI 2016 - Ranking of EU countries


Slovenia's performance in the DESI 2016

Slovenia ranks 18 among EU countries. It is part of the group of countries that are catching up.


Connectivity: Fixed Broadband Coverage

In Slovenia, fixed broadband is available to 95% of households (97% in the EU). NGA connections are available to 79% of Slovenian households (71% of European

households).

Source: Broadband coverage in Europe, studies for the EC by IHS and Valdani, Vicari & Associati (SMART 2013/0054)


Connectivity: Rural Fixed Broadband Coverage

In Slovenia fixed broadband connections are available to 84% of households in rural areas

(91% of european households in rural areas).

Source: Broadband coverage in Europe, studies for the EC by IHS and Valdani, Vicari & Associati (SMART 2013/0054)


Connectivity: Fixed Broadband Take-up

75% of Slovenian households subscribe to fixed broadband (72% in the EU), and 21% of those subscriptions are to a fast* connection (16% of Slovenian households).

30% of EU broadband subscriptions are to a fast* connection (22% of EU households).

Source: Eurostat and Electronic communications market indicators collected by Commission services, through National Regulatory Authorities, for the Communications Committee (COCOM)

* A broadband connection is considered to be a fast connection when it allows for donwload speeds above 30 Mbps.


Connectivity: Fixed Broadband Price

In Slovenia the cheapest fixed (internet only) broadband connection allowing for speeds of 12-30Mbps costs 1.7% of the average individual income (overall in the EU it costs

1.3%).

Sources: (access cost) Broadband Internet Access Cost (BIAC), annual studies for the EC realised by Van Dijk; (income) real adjusted gross disposable income of households per

capita (Eurostat: tec00113);


Connectivity: Mobile Broadband Take-up

In Slovenia there are 50 subscriptions to mobile broadband per each 100 people (75 in the EU)

Source: Electronic communications market indicators collected by Commission services, through National Regulatory Authorities, for the Communications

Committee (COCOM)


Connectivity: Spectrum

Slovenia has reached 60% of the EU goal for spectrum to be harmonised for use in mobile Broadband.

In the EU as a whole 69% of the goal has been reached.

Source: European Commission Services


Human Capital: Internet Users

22% of Slovenians have never used the internet (16% in the EU)

Source: Eurostat - Community survey on ICT usage in Households and by Individuals


Human Capital: Digital Skills

In Slovenia 25% of citizens have basic digital skills (27% in the EU)

and 26% have above basic digital skills (28% in the EU)



Human Capital: ICT Specialists in the workforce

In Slovenia ICT Specialists account for 4.8% of the workforce (3.7% in the EU).

Source: Eurostat - Labour force survey


Human Capital: Graduates in STEM (Science, Technology and Mathematics)

Slovenia has 19 graduates in STEM per each 1000 people aged 20-29 years old (18 in the EU).

Source: Eurostat - Science and technology graduates by sex


Use of Internet

Slovenians, much like European citizens in general, perform a diverse set of activities online.

They use the Internet to consume content and media, to communicate, and to perform transactions.

Source: Eurostat - Community survey on ICT usage in Households and by Individuals; IHS Technology databases - TV Media Intelligence Service.


Integration of Digital Technology: Business digitization

Businesses in Slovenia are adopting different digital technologies to enhance productivity,

such as sharing internal information electronically or using RFID, eInvoicing, Social Media and Cloud.

Source: Eurostat - Community survey on ICT usage and eCommerce in Enterprises


Integration of Digital Technology: SMEs selling online

In Slovenia 16% of SMEs sell online (16% in the EU).

10% of Slovenian SMEs sell online to other EU countries (7.5% in the EU).



Integration of Digital Technology: SME Turnover from eCommerce

SMEs in Slovenia obtain on average 15% of their turnover from eCommerce (9.4% in the EU).

Large enterprises derive on average 19% of their turnover from eCommerce (24% in the EU).



Digital Public Services: eGovernment users

24% of Slovenian internet users have exchanged filled forms with the public administration online,

whereas overall in the EU 32% of internet users have done so.



Digital Public Services: eGovernment service sophistication

Slovenian online public services score 43 out of 100 in the Pre-filled Forms* indicator and 84 out of 100 in the Online Service Completion** indicator (EU scores 49 and 81 respectively).

Source: eGovernment Benchmark. * Pre-filled Forms measures to which extent data known to the public administration is pre-filled in forms

presented to the user. ** Online Service Completion measures to which extent the steps in an interaction with the public administration – life event – can be performed completely online.


Digital Public Services: Open Data

Slovenia scores 135 out of 700 in the European Public Sector Information scoreboard,

against an overall score of 351 out of 700 for the European Union.

Source: The Public Sector Information Scoreboard is a ‘crowdsourced’ tool to measure the status of Open Data and PSI re-use throughout the EU.


ec.europa.eu/priorities/digital-single-market/index_en.htm

ec.europa.eu/digital-single-market

@DSMeu #DigitalSingleMarket #dsmeu

Digital Single Market Digital Single Market

Documents

Why Digital Single Market...2016/06/06 · Digital Single Market 63% of EU entreprises provide mobile devices for business use 18% of total turnover of EU enterprises come from eCommerce